Property prices across Australian capital cities fell in the June quarter 2018, according to the Real Estate Institute of Australia (REIA).
The weighted average median price decreased by 0.8 per cent for houses and 0.3 per cent for other dwellings.
The Real Estate Market Facts report shows the weighted average median price for houses across Australia slid to $765,098 over the quarter, with prices dropping in all capital cities except Brisbane, Adelaide and Hobart.
REIA president, Malcolm Gunning, says the weighted average median price for other dwellings decreased to $590,935 over the quarter, with prices falling in all capital cities except Melbourne, Brisbane, Hobart and Darwin.
Prices falling across Australia
"Canberra had the largest fall in house prices and Adelaide had the largest decline in other dwellings," he says. "Adelaide has both the lowest median price for houses at $471,000 and the lowest median price for other dwellings at $354,167.
"Over the quarter, the median rent for three-bedroom houses increased in Canberra and Darwin, remained steady in Perth and decreased in Sydney, Melbourne, Brisbane, Adelaide and Hobart. The median rent for two-bedroom other dwellings increased in Canberra and Hobart, remained steady in Perth and decreased in Sydney, Melbourne, Brisbane, Adelaide and Darwin.
"Hobart had the largest increase while Brisbane had the largest decrease."
Gunning also says the weighted average vacancy rate for the eight capital cities fell to 2.5 per cent during the June quarter 2018. This indicates a tighter rental market. Canberra has the tightest market with a vacancy rate of 0.8 per cent.
"Over the past 12 months, loan numbers have decreased by 3.8 per cent across the country with declines in all states and territories except Tasmania," he continues. "The largest decrease of 13.6 per cent was in Western Australia. In Sydney and Melbourne – the two cities which have had the largest price increases over the past few years – the drop in loans is attributable to APRA restrictions on investment loans and more stringent home lending criteria.
"The June quarter figures reflect reports of a changing dynamic in the market, particularly in the nation’s major cities."
Impact on NSW house prices
Over the June quarter 2018, the median house price in Sydney fell to $1,144,217. This is a decrease of 1.4 per cent over the quarter and 4.5 per cent over the year.
Inner Sydney and Middle Sydney median house prices both decreased, but Outer Sydney saw a small increase of 0.6 per cent.
The median price for other dwellings also fell to $737,000, a decrease of 0.5 per cent over the quarter and 3.5 per cent over the year.